Beware! SorosBit is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Even though SorosBit claims it has established itself as one of the leading providers of online FX trading, everything about this broker speaks just the opposite. Don’t let it fool you with bold statements about being globally regulated – this firm isn’t authorized to offer financial services and no watchdog really regulates it. SorosBit also doesn’t provide any legal documentation that can prove its credibility, so trading with this firm would hardly be the best choice. On the contrary – you may end up without two nickels to rub together. In the following review we have tried to explain all drawbacks of SorosBit and why we think it shouldn’t be trusted.
Regulation and safety of funds
First things first – this broker states that SorosBit is the trading name of SorosBit Limited (for the UK and EU) and SorosBit Markets (for Dubai). Moreover SorosBit claims its registered address to be in St. Vincent and the Grenadines. Note however that this country is known as a scam heaven, as forex brokerage isn’t regulated there. This means that brokers are not obligated to follow any requirements and also aren’t supervised by any financial watchdog.
This being said, this broker claims to be regulated by several financial authorities – the Financial Conduct Authority (FCA) of the UK, CySEC (Cyprus), Cayman Islands Monetary Authority and DIFC (Dubai). Unfortunately this just isn’t the case, as these regulators have nothing to do with SorosBit. We searched their registers, but SorosBit wasn’t on them. Take a look at the results from the FCA website for example:
So, at this point it’s 100% clear that this broker lies about its regulation. Keep in mind that investing with unlicensed brokers comes with the inevitable risk of losing your money entirely, as these firms are not supervised and are capable of anything. But the worst thing is that you won’t get any client protection – in case things go wrong no financial authority would be able to help you anymore.
And by client protection we mean that your funds are at safe hands at least to say. Reputable brokers have to meet many strict requirements in order to prove their reliability and eventually to be granted a license. For example there’s a minimum capital requirement – 730 000 EUR for the UK and the EU and 20 000 000 USD for the US. Moreover regulated brokers must keep their customers’ funds in segregated accounts, safe from creditors or any kind of fraud. Legitimate brokers in the UK and the EU are also obligated to participate in client protection schemes – in case the broker goes bankrupt you can be compensated with up to 85 000 GBP in the UK or up to 20 000 EUR for most of the countries in the EU. Of course you can’t expect such client protection if you are trading with an unlicensed firm, as we already mentioned.
SorosBit describes its trading software as “unique” and also claims to offer the famous Expert Advisors that are only seen with MetaTrader 4 and MetaTrader 5. At this point we were curious to know what platform this broker really offers, but after we registered our enthusiasm quickly faded. It turned out that SorosBit provides a very simple web-based platform that has nothing to do with what it claimed. See for yourself:
There are some custom indicators and basic tools, but you certainly can’t benefit from using Expert Advisors – this feature can only be seen with MT4 and MT5 as we already mentioned.
MT4 and MT5 are appropriate even for both advanced traders and beginners. You can be assured that the safety of your funds and personal information is granted as all transactions are encrypted as well as your IP address.
You can also choose between a wide range of educational resources, forex news and technical analysis tools. Most of the customers consider the trading bots to be the best part however. These bots, also called Expert Advisors, analyze the forex market in a search of certain conditions and then perform trading operations once they find them.
MT5 and MT4 can be easily downloaded on PCs, smartphones and tablets and have regular updates. Unfortunately, since Apple removed both MetaTrader 4 and 5 from its AppStore, these platforms can’t be downloaded any more from iPhone/ iPad users. All of you that have already installed the apps can continue using them, but without the above-mentioned updates. On the contrary you can still download MT4 and MT5 from Google Play Store.
SorosBit doesn’t say much when it comes to its trading conditions. Finally, we managed to find some useful information on its website, take a look at it down below:
It turns out that this broker offers fixed spreads from 1.5 pips as well as raw spreads from 0.1 pips – or at least this is what it claims. Bear in mind that even if you trade with raw spreads, there certainly are going to be some commissions at the end. On its trading platform there was a spread of 0.4 pips for EURUSD that is ok in general, as any spread less than 2 pips comes with lower trading costs. However, don’t forget that this firm is totally unlawful and better not invest here. There are many reputable brokers that offer tight spreads and good trading conditions.
SorosBit also requires 100 USD as a minimum deposit. In fact this is a bit lower than the usual amount asked by legitimate brokers (around 250 USD). Nevertheless, we don’t recommend this broker for the reasons stated above. What’s more, many genuine brokers offer micro accounts with less money – around 10 USD to be precise.
As for the leverage, this broker doesn’t specify anything on the topic. When we registered and saw its trading software, there was a leverage of 1:20. This amount is also fine, as the higher the leverage is, the greater the risk gets. In fact there is a leverage restriction in many countries like 1:30 in the EU and 1:50 in the US. However, as this broker is based in St. Vincent and the Grenadines, it isn’t regulated in any way and you can’t get any client protection, as we already mentioned. For this reason, better avoid investing here no matter what trading conditions it offers. On the other hand, if you want to trade with higher leverage, we suggest looking at some of the offshore subsidiaries of reputable forex brokers.
Deposit/Withdrawal methods and fees
There is no information on the website regarding the payment methods this broker accepts. After we opened an account and tried to add funds to it, it turned out that this broker really hides something shady. It seems like you have many options, but in fact there is only one type of payment – via crypto coins. You just can use different platforms in order to make a deposit – like Coinbase, Bitonic, Binance and some more. Take a look:
It seems strange that SorosBit doesn’t offer some more payment methods like the traditional credit/debit card or bank transfer. Not only that, but crypto transactions are known to be absolutely irreversible and anonymous, that’s why scammers usually insist on using them. In the case of SorosBit this is certainly a red flag, so stay away from this broker for your own safety.
How does the scam work
Be very careful to whom you provide your personal information like email or phone number. The moment scammers have your number they will start calling you in an attempt to make you invest right away.
They will most certainly assure you that trading with them is risk-free, which is highly doubtful at least to say. Also be prepared to hear that you can get a fast and incredibly high return on investment – this is also a shameless lie of course. Scammers tend to sweet-talk traders into making a deposit and then vanish like thin air.
Before that however they might try to manipulate their trading software so it looks as if your money is being invested. They might also fool you into believing that your results are very profitable. This is done with one specific purpose – to make you invest even more before you find out that everything is a lie.
Expect all kinds of hidden fees the moment you try to withdraw even a cent and what is the worst part – to find out that a withdrawal is declined no matter what you do.
What to do when scammed
If you have been scammed, the first thing you can do is to turn to the bank that issued your credit or debit card and ask for a chargeback. If you have paid with your Visa/ Mastercard, a chargeback is eligible within 540 days.
Wire transfers are more difficult to return, and the best thing you can do in this situation is to change your online banking username and password as soon as possible.
Using payment methods like Neteller, Paypal or Skrill also gives you the opportunity to open a dispute in case of online scam.
Unfortunately crypto transactions are irreversible as we already stated and therefore your money can not be returned. All in all we advise you not to trust brokers that use only crypto coins such as Bitcoin or Ethereum.
Last but not least, certainly don’t trust people on the internet offering to return your funds only after you pay a certain fee. They might also be scammers so don’t risk losing more money than you already have!